British manufacturing purchasing managers' index (PMI), a gauge of the industry's activities, rebounded to 51.9 in July 2015 from a 26-month low of 51.4 in June 2015, said Markit Economics Monday.
The data was higher than the market estimates consensus of 51.5, and it has stayed above the neutral 50.0 mark in each month since April 2013. A figure above 50 suggests that the sector is growing.
But the London-based survey compiler said the start of the third quarter saw conditions in the British manufacturing sector remain relatively subdued as it was below the average for the current sequence of growth that began in April 2013, which is 54.3.
The expansion of production remained highly dependent on the strong performance of the consumer goods sector, which offset lackluster growth at intermediate goods producers and a contraction in the investment goods sector, said Markit.
New export orders declined for the fourth straight month in July, mainly as a result of the sterling-euro exchange rate hitting competitiveness in euro zone markets, stressed Markit.
Manufacturing employment increased for the 27th successive month in July, data showed.